All interesting information. Our check stubs have all this broken down. This is an example from our most recent check covering March sales for one well:
Gas: Owner share of gas: 126.08 mcf Sale price per mcf: $1.61 Owner gross value: $202.83 Taxes deducted: $14.03 Processing costs: $33.90 Owner Net: $144.90
NGL: Owner share of gas: 590.70 gallons Sale price: $0.21 per gallon Owner gross: $124.14 Tax deducted: $0.0 Processing costs: $192.24 Owner net: ($68.10)
Repeated in similar fashion for every well paying us royalties. Needless to say it seems wrong to me to have to pay the producer to extract and process NGL’s - our lease is for simple royalties, no cost sharing. This happens on every well. Is this truly normal and we should just accept it as normal in times of low prices? For February sales for very similar volumes when the price per gallon for NGL’s was $0.38 per gallon, we netted only $5.54 on the same well.